Eden Games, makers of the Test Drive series, staged a symbolic one-day walkout last year when Atari moved forward on plans to lay off more than half the studio. Now it's moving toward washing its hands of all of it.

Atari's plans to lay off more than 50 percent of Eden Games' workforce, plus alleged…
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Financial filings by Atari say the French maker of racing games is now considered a "discontinued operation" and that Atari has begun "a divesture process" for the studio, which sounds like polite-speak for "getting rid of it." But a corporate representative reportedly told Joystiq "the studio has not closed and we will continue to support the console and PC games of Eden Games, notably Test Drive Unlimited 2."

In the financial filings, Atari also reported a revenue decline of some 44 percent overall for the fiscal year.